AP2’s mandate includes managing the fund capital in an exemplary manner, through responsible investments and responsible ownership. Particular emphasis shall be placed on how sustainable development can be promoted, without compromising the overarching objective.

Sustainable development is a prerequisite for a good pension for current and future generations. AP2 has an ambitious sustainability agenda, grounded both in the Fund’s mandate and in the conviction that sustainability pays off. This entails acting with a long-term perspective to protect and create value – based on an economic, environmental and social perspective.

AP2 has four focus areas within sustainability – climate, biodiversity, human rights, and corporate governance. The work within these areas follows a shared methodology comprising six components: integration, analysis, materiality, engagement, collaboration, and transparency. Please read more in our Sustainability report.

Long-term goals

AP2 has defined long-term objectives to set the direction for the Fund’s work in each focus area:

Climate	Biodiversity	Human Rights	Corporate Governance
Net zero greenhouse gas emissions by 2045. Greenhouse gas emissions of -55 per cent by 2030 (base year 2019). All asset classes in line with the Paris Agreement by 2025.	Contribute to a positive net impact on nature by 2030. A portfolio that does not contribute to illegal deforestation by 2025.	Implementation of the UN Guiding Principles on Business and Human Rights by 2025.	By 2030, the Fund’s listed holdings must on average have board representation of at least 40 per cent of each gender. AP2’s overall corporate governance goal is to contribute to a better return in the portfolio, and the Fund therefore acts actively by voting on relevant issues in all listed companies.

AP2’s sustainability policy is based on the core values and positions of the Swedish state, as well as the AP Funds’ shared core values. The Sustainability Policy sets the overall framework for the Fund’s sustainability work. It is implemented through the Fund’s sustainability strategy and action plans for each focus area, which are published here.

AP2’s sustainability work adheres to a method that consists of six parts. These form the basis for the strategies describing the work that the Fund undertakes within each focus area. The method answers the question of “how” this work is conducted through responsible investments and responsible ownership.

AP2’s method of working with sustainability

1. Integration
   Sustainability is integrated throughout the organisation, in asset management and in the Fund’s day-to-day work.
2. Materiality
   AP2 focuses its work on the issues that are most important and where the Fund can make the greatest difference.
3. Analysis
   Sustainability work is based on solid, fact-based analysis, both before an investment and in the role of owner.
4. Engagement
   AP2 influences companies to fulfil the Fund’s expectations in sustainability issues.
5. Collaboration
   The Fund can achieve more through collaboration, both internally and with other investors.
6. Transparency
   AP2 walks the talk and builds trust through transparency.

Sustainability risks

The most significant risks to which the Fund may be exposed can be divided into financial, operational and impact risks. Sustainability risks can generally be seen to affect all of these. Impact risks include the risk that an investment might have a negative impact on people or the environment. Examples of impact risks related to people are human rights violations, corruption and bribery. Examples of impact risks associated with the environment are illegal deforestation, greenhouse gas emissions and dumping of environmentally hazardous waste. The purpose of identifying impact risks is to manage the risks, i.e. that the Fund has processes to avoid the risks it does not want in the portfolio and to use engagement to seek to reduce the risks identified in the portfolio.

Organisation and distribution of responsibility

AP2’s Board determines guidelines and policies in governance issues and has mandated the CEO of the Fund to manage these in the ongoing operations of the Fund. The Fund’s Executive Management are responsible for the strategic sustainability work and for implementation and follow-up. The day-to-day work is handled by the Fund’s various departments, with support from the sustainability team.

At each Board meeting, AP2’s Board receives a report on the Fund’s sustainability work.

Policy

Reports

Sustainability Reports